Fed Rate Cut Sparks Crypto and S&P 500 Rally

The Federal Reserve, led by Chair Jerome Powell, announced a 25 basis points rate cut on September 17, 2025. This marked the first rate reduction of the year, influencing both traditional and cryptocurrency markets.

Tying traditional market strategies to cryptocurrencies could shape future financial trends, particularly affecting institutional players involved in Bitcoin ETFs.

The Federal Reserve’s decision has prompted notable shifts. Jerome Powell’s cautious approach has meant a strategic rate cut, impacting both the S&P 500 and cryptocurrencies like Bitcoin and Ethereum. The S&P 500 has achieved new heights post-cut. Bitcoin’s trading range sits between $115,000 and $118,000 with institutional focus intensifying on Bitcoin ETFs. Michael Saylor’s MicroStrategy remains heavily reliant on this, reflecting in the ongoing crypto-equity integration.

Increased ETF inflows, amounting to $13 billion since January 2024, signify deepening institutional involvement, while analysts maintain a close watch on Bitcoin’s critical support levels. Bitcoin, trading near $117,500, reflects the intertwining of traditional and crypto assets following the cut. Historical data shows average S&P 500 gains of 14% post-cuts, echoing expectations for synchronized movements.

Ali Martinez, Crypto Analyst – “Bitcoin must hold $115,440 as support, as per Pricing Bands. If held, a move toward $137,300 could ensue; a breakdown risks downside to $93,600.”

The crypto market’s collaborative rally underscores the need for strategic analysis amid fluctuating macroeconomic indicators.